HOUSE OF REPRESENTATIVES

H.R. NO.

109

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 


HOUSE RESOLUTION

 

 

URGING THE Governor and leaders of the CITY AND COUNTY OF HONOLULU TO WORK WITH THE LEGISLATURE TO PROVIDE PROPERTY TAX BREAKS FOR state RESIDENTS WHILE INCREASING taxes for OUT-OF-STATE AND FOREIGN INVESTORS.

 

 

 


     WHEREAS, the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii recognizes that for many local residents, homeownership is not a viable option; and

 

     WHEREAS, Hawaii's high cost of living, the regressive nature of the general excise tax, and current income tax structure all serve as impediments for local residents in their endeavors to purchase a first home; and

 

     WHEREAS, because of these challenges to local residents, many are unable to take advantage of Hawaii's homeowner-friendly atmosphere, which includes having the nation's lowest property taxes and a reliable appreciation in property values due to the robust housing market; and

 

     WHEREAS, those reaping the benefits are often affluent investors and the international "one percent" based outside of the State who do not deal with the difficulties that local residents are faced with and are instead focused on the desire to make profits rather than to call Hawaii their home; and

 

     WHEREAS, inherent disadvantages for state residents continue to contribute to Hawaii's "brain drain" problem as a recent nationwide survey found that Honolulu had the fourth-largest percentage of residents who depart to other locations; and

 

     WHEREAS, although the City and County of Honolulu's implementation of "Residential A" classification of lands helps to address these issues, it does not go far enough with assistance to local residents nor does it protect against future increases in property taxes; and

 

     WHEREAS, the continuation of the status quo will only serve to enrich out-of-state investors at the expense of local residents and exacerbate the need for affordable housing for local families; and

 

     WHEREAS, in light of these problems, creative solutions should be pursued, such as granting a state refundable tax credit claimable by local residents, which could help locals regardless of changes in property tax rates; implementing graduated property tax rates based on a home's assessed value and ownership; or examining the interactions between the general excise, income, and property tax rates to consider whether they should be amended; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2017, that this body strongly urges the Governor and the leaders of the City and County of Honolulu to collaborate with the Legislature to develop a plan that includes tax incentives and would level the playing field for local families who are forced to compete with out-of-state and foreign investors to own properties in Hawaii; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the Mayor of Honolulu, and each member of the Honolulu City Council.

 

 

 

 

OFFERED BY:

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Report Title: 

Property Tax Breaks for State Residents